Sale of interest in Mkushi Copper joint venture for US$13.1m

About this update from Rtg Mining, Inc.

[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nPERTH, Western Australia, Aug. 29, 2013 /CNW/ - RTG Mining Inc.\n (TSX:RTG) (RTG) is pleased to announce an agreement has been entered into for the sale\n of RTG's 51% interest in the Mkushi Copper Project in Zambia for\n US$13.1m (Transaction).  The sale to our joint venture partner, Elephant Copper Ltd. (Elephant Copper), is subject to conditions precedent, with completion expected in mid\n September 2013.\n\n\nThe purchase price of US$13.1m will be satisfied by the issue of US$6.6m\n in new fully paid ordinary shares in Elephant Copper and a US$6.5m\n unsecured redeemable convertible note (Convertible Note). The Convertible Note will be repayable on or before 1 January 2015,\n unless converted earlier, and will have an exercise price for\n conversion equal to the lesser of US$0.45 and 1.36 times the IPO Price\n (as defined in the agreement).  Elephant Copper is in the process of\n completing a \"go public event\" (IPO) through a transaction that would, after obtaining regulatory approval,\n be the qualifying transaction for Credent Capital Corp.\n\n\nIf Elephant Copper enters into an \"alternative transaction\" (a sale of\n 20% or more of the shares or assets in Elephant Copper or similar\n transaction) both parties have rights to convert the US$6.6m share\n issue into a cash payment and Elephant Copper is entitled to redeem the\n Convertible Note early.\n\n\nElephant Copper has also agreed to repay on or before 1 January 2014,\n certain debts owing to RTG, which are currently in the order of\n US$1.35m.\n\n\nABOUT RTG MINING INC.\n\n\nRTG Mining Inc. is listed on the main board of the TSX and is a mining\n exploration company focused on identifying new gold development and\n operating acquisition opportunities.  RTG is now run by the previous\n management team of CGA Mining Limited, which successfully merged with\n B2Gold Inc. in a US$1.1bn scheme of arrangement in January 2013. \n RTG also holds a 51% interest in the Segilola Gold Project in Nigeria\n (in dispute), the largest undeveloped gold resource identified in\n Nigeria and holds a 51% interest in the Mkushi Copper Project in\n Zambia, the subject of this announcement.  At the Segilola Gold\n Project, Ratel Group has identifie...

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